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Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufacturing output. What will happen to the return (rental) on capital when trade occurs?
Pure Discount Debt
is a form of debt financing where the borrower issues securities at a discount from their face value, which will be repaid at maturity for the full face value.
Risk-Free Rate
The theoretical return on an investment with zero risk, representing the interest an investor would expect from an absolutely risk-free investment over a specific period.
Debt
Money that is owed or due to another individual or entity.
Market Value
The going rate for buying or selling a service or asset.
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